Business-Social Networking Groups

I’ve spent a considerable amount of time lately in looking at networking, or “leads”, groups around the country and kind of evaluating what they are doing and how that might work in with some of the things we might wish to do with NetWorks!. Certainly, there are a lot of different formats to choose from and most of those can be found right here in Boise, Idaho. I thought it might be beneficial to discuss the varying anatomy of such groups.

Organization: Most groups are, at least to some degree, member run. This means that members will likely be asked to serve in a leadership function at some point. There are other groups that may be a part of a national organization that will still count on local members to run their own groups at least on a day to day basis. Some groups, and NetWorks! would fall into this category, are owned by individuals and are run as a business. In this scenario, the responsibility of day to day operations of the group fall upon the group management. Finally, some groups may be very loosely organized with literally no structure at all. Examples of this would be select folks that get together regularly for coffee to discuss what might be going on in their local business community.

Schedule: The largest percentage of serious leads groups will meet on a weekly schedule, typically over breakfast or lunch, although there are some that might meet every other week or once a month. NetWorks! meets weekly over lunch, however, a breakfast group is planned for fall 2009.

Membership: Most groups do limit membership to one member per industry classification. I have seen organizations that do not and, at least to me, that moves them from a networking group classification to more of a Social-Business Networking event such as the “Smoke Out” (a local monthly Meridian function)  or a  Chamber of Commerce “Business After Hours” event. Some groups may further their membership requirements to include B2B members only (member target markets must be “business”) or even industry specific groups such as “technology” or “construction”. NetWorks! is a B2B group only. Mixing B2B and B2C (business to consumer)  members would mean that each is addressing a different target market and, in our opinion, that dilutes the group focus.

Focus: Referrals are always a focus at every group. At some groups, that may be the only type of lead shared. Some groups actively encourage members to do business with each other while others see that as natural result of group association and do not encourage the proselytizing of other members. NetWorks! would be the latter. You “earn the right” to do business with another member just as you would with any other potential client. Most groups will share general business intelligence leads that might be appropriate for a variety of group members. NetWorks! would be among these.

Commitment: Here is where everything seems to break down. While all groups will encourage regular attendance, there are a lot of groups that are just grateful to have you show up whenever you can. For that matter, I have seen groups where there are no attendance “requirements” at all. The same goes for participation. Now, why you would join a group and not plan to attend is beyond me. However, there is often logic at work for both the non-attending member and for the group itself. Most groups will publish leads given weekly in either an email or fax that is sent to all group members. So, even If I don’t show, I still get the leads. As for the group, most have dues structures where members will pay in advance either monthly or quarterly. If the meeting includes a meal, that is often built into the dues structure. What happens if you don’t attend? The group does not pay for your meal but you still do. Now then, those dollars can then be used for guest meals, speaker meals, group functions, or bottom line profits if the group is professionally owned and operated. It’s a win-win (smile).

But is it? I think it is a lose-lose. Low attendance always leads to lower attendance. Low attendance always leads to a dying group. If somebody is not attending meetings, while they are still getting the leads, they are not contributing. And, an industry slot is being held open for them. What if nobody came and nobody gave leads? No group (smile). As for the individual member, I can guarantee you with 100% accuracy that members who consistently attend meetings and contribute are the ones who get more and better referrals. Simple fact.  Still, many groups chafe at the thought of asking another member to move on. Probably something that is decided by committee and the poor schmuck who is the sitting president gets the unenviable task (smile). NetWorks! is a benevolent dictatorship and I have no problem in encouraging a member to seek camaraderie elsewhere (smile). It’s not personal, it’s just business.

Dues Structure: I have seen dues range from nothing (buy your own coffee) up to $300/quarter for a weekly meeting including your meal. B.T.W., NetWorks! dues, coincidentally, are $1.200/year (smile). Most member run groups are in the $500-$600 range annually if they include a meal. Competitive “business operated” groups usually fall into the $800-$900 annual range. Some groups may have a base dues structure and then you buy your own meals.

So, why NetWorks!?: First let me say that NetWorks! is not for everyone. It is highly structured to ensure your success. That being said, if we are not right for you, drop me a line and I will gladly share with you links to other leads groups that meet here regularly in the Boise area. We do require a minimum of 75% attendance and a minimum average of two good leads, referrals, or lead updates weekly (even if you can not attend the meeting in person). We do allow you to designate an alternate from your business in the event that you can not attend a meeting. Our y.t.d. attendance is presently 84%. Leads are not emailed or faxed to you. They are uploaded to our password protected web based fully functioning CRM. We are a business to business group. We regularly invite industry relevant guest speakers. You will never be asked to be president or serve on a committee (smile). We use this site to educate and to push out to the business public information about our members and their services. We even Twitter links to their profiles (smile). Meetings start and end on time. NetWorks! is about business.

Stick a fork in me. I’m done (smile). Thanks for visiting!

Craig